Unemployment and Debt

Sunday, December 4, 2016 - 02:24

Money Management, Wage Garnishment

Unemployment can happen to anyone. I was recently talking to a man who was telling me about how busy his division was at work and how he thought they would be hiring more employees soon. Just to find out the next week that his company was downsizing and his division was being shut down. Needless to say, he was laid off. Being unemployed is a new experience for many people and can be very scary. Debt can quickly creep up on you and before you know it, you may need to seek help to get back on track.  

What can I do to help my finances?

If you are unemployed and “feeling the pinch”, it's important that you start dealing with your debt problem as soon as possible. Depending on your situation, you may just need to become more creative with your budget. If you’re on the other end of the spectrum, you may need to seek help from a Licensed Insolvency Trustee. Either way, it’s a good idea to follow these financial tips:

  • Avoid taking out any more loans
  • Stop further use of your credit cards
  • Try not to increase your overdraft. Many people do this to tide them over between jobs, but overdrafts can be very difficult to get out of, even when you're back in work
  • Move to a basic bank account to stop your bank collecting on any debts you may owe to them by right of setoff
  • Avoid taking out any loans secured against your home

Remember that many people in Canada are having problems with their debts, so you needn’t feel ashamed or embarrassed. If you're suffering under a burden of debt, please don't hesitate to get contact us for a free, no-obligation consultation. We will review all of your options so you can leave the consultation with all of the information you will need to make a clear and informed decision.